Financial Performance - Revenue for the first half of 2024 decreased by 6.2% to approximately RMB 133.9 million from RMB 142.8 million in the same period of 2023[1] - Gross profit fell by 10.6% to approximately RMB 21.2 million, down from RMB 23.7 million in the previous year[1] - The company reported a loss of RMB 19.5 million for the first half of 2024, an increase of 84.5% compared to a loss of RMB 10.5 million in the same period of 2023[1] - Total revenue decreased by 6.2% from approximately RMB 142.8 million in H1 2023 to about RMB 133.9 million in H1 2024[9] - Gross profit declined by 10.6% from RMB 23.6 million in H1 2023 to RMB 21.1 million in H1 2024[9] - The net loss for the first half of 2024 was approximately RMB 19.5 million, compared to a net loss of about RMB 10.5 million in the first half of 2023[22] - The group reported a revenue of RMB 133,899 thousand with a gross profit of RMB 21,147 thousand for the first half of 2024, compared to RMB 142,787 thousand and RMB 23,647 thousand respectively for the same period in 2023[30] - The group experienced a net loss of RMB 19,458 thousand for the first half of 2024, which is an increase from a net loss of RMB 10,544 thousand in the same period of 2023[31] - The group reported a basic and diluted loss per share of RMB 3.3 cents for the first half of 2024, compared to RMB 1.8 cents for the same period in 2023[30] Revenue Breakdown - The decline in revenue was primarily due to a decrease of approximately RMB 9.3 million from mobile gaming, while digital media revenue increased by approximately RMB 31.4 million[4] - Revenue from mobile games development and operation decreased by 16.5% from RMB 56.2 million in H1 2023 to RMB 46.9 million in H1 2024[10] - Revenue from digital media content sales increased by 66.8% from RMB 47.1 million in H1 2023 to RMB 78.5 million in H1 2024[11] - Revenue from game product supply decreased by 78.5% from RMB 39.6 million in H1 2023 to RMB 8.5 million in H1 2024[12] - Revenue from customer contracts for the six months ended June 30, 2024, was RMB 133,899,000, a decrease from RMB 142,787,000 for the same period in 2023, representing a decline of approximately 6.5%[43] - Revenue from mobile game development and operation for the six months ended June 30, 2024, was RMB 46,760,000, compared to RMB 54,833,000 in 2023, reflecting a decrease of about 14.5%[43] - Revenue from Mainland China was RMB 78,716,000, down from RMB 81,643,000, reflecting a decline of 3.6%[40] - Revenue from other countries/regions was RMB 55,183,000, a decrease of 9.7% from RMB 61,144,000[40] Expenses and Costs - Selling costs decreased by 5.4% from RMB 119.1 million in H1 2023 to RMB 112.8 million in H1 2024[13] - Selling costs as a percentage of total revenue increased to approximately 84.2% in H1 2024 from 83.4% in H1 2023[13] - Administrative expenses increased by approximately RMB 7.3 million or 49.8% from about RMB 14.5 million in the first half of 2023 to about RMB 21.8 million in the first half of 2024, mainly due to increased office space and staff costs, as well as professional service fees from the acquisition of Beijing Wonder Game Technology Co., Ltd.[15] - Research and development expenses rose by approximately RMB 3.8 million or 31.6% from about RMB 12.2 million in the first half of 2023 to about RMB 16.0 million in the first half of 2024, driven by increased investment in multiplayer mobile game development projects[16] - The cost of sales for the six months ended June 30, 2024, was RMB 112,752,000, down from RMB 119,140,000 in 2023, showing a reduction of approximately 5.5%[46] - The company’s employee benefits expenses, including salaries and bonuses, amounted to RMB 8,966,000 for the six months ended June 30, 2024, down from RMB 10,034,000 in 2023, representing a decrease of approximately 10.7%[46] Cash Flow and Assets - Cash and cash equivalents decreased from approximately RMB 37.2 million as of December 31, 2023, to about RMB 15.3 million as of June 30, 2024, due to increased investment in multiplayer mobile game development[23] - The total assets of the group as of June 30, 2024, amounted to RMB 238,683 thousand, significantly higher than RMB 123,640 thousand as of December 31, 2023[33] - The group’s trade receivables increased to RMB 133,629 thousand as of June 30, 2024, compared to RMB 84,753 thousand at the end of 2023[32] - The group’s non-current assets, including property, plant, and equipment, decreased to RMB 5,798 thousand as of June 30, 2024, from RMB 6,893 thousand at the end of 2023[32] - The group’s equity attributable to the parent company increased to RMB 225,491 thousand as of June 30, 2024, compared to RMB 111,159 thousand at the end of 2023[33] - Trade payables amounted to RMB 112,295,000 as of June 30, 2024, compared to RMB 59,275,000 as of December 31, 2023[54] Strategic Initiatives - The company plans to enhance its artificial intelligence (AI) technology development and product application in the second half of 2024[6] - The company aims to strengthen mobile game development and actively expand into overseas markets through collaborations with well-known IP and gaming companies[6] - The integration of AI technology is expected to enrich and improve the performance and user experience of digital entertainment services[5] - The company will continue to optimize its existing business structure to ensure stable development while exploring new product scenarios and resource integration[5] - The group aims to enhance product diversification and expand its business portfolio through strategic acquisitions like IWL[55] Corporate Governance - The Audit Committee consists of three members, ensuring compliance with relevant accounting standards and regulations[61] - The company’s interim financial performance for the six months ending June 30, 2024, was deemed compliant with applicable accounting standards[61] - The company is committed to maintaining high corporate governance standards and will appoint at least one female director by December 31, 2024, to meet diversity requirements[62] - The company has adhered to the corporate governance code during the first half of 2024[62] - All directors confirmed compliance with the standards governing securities trading during the first half of 2024[62] Dividends and Share Placements - No interim dividend will be declared for the first half of 2024, consistent with the previous year[2] - The net proceeds from the first placement of new shares amounted to approximately RMB 88.18 million, fully utilized by June 30, 2024[58] - 30% of the first placement proceeds (RMB 26.45 million) was allocated for the development of gaming and AI products[58] - The net proceeds from the second placement of new shares were approximately RMB 25.32 million, fully utilized by June 30, 2024[59] - 30% of the second placement proceeds (RMB 7.60 million) was designated for the development of gaming products and AI[59] - The net proceeds from the third placement of new shares were approximately RMB 12.96 million, with RMB 3.10 million remaining unutilized as of June 30, 2024[60] - 30% of the third placement proceeds (RMB 3.89 million) was allocated for the development of gaming and AI products, with a portion already utilized[60] Risks and Challenges - The group faced significant risks in the mobile gaming market in China, including potential policy changes and reliance on distribution channels[29] - The group faced challenges in sourcing quality gaming products and potential foreign exchange fluctuations impacting cash flow[29] - The group has implemented strict controls on trade receivables to minimize credit risk, with overdue balances reviewed regularly by senior management[52]

Financial Performance - The total revenue for the fiscal year 2023 was RMB 67,139,000[43] - The company reported a net loss of RMB 25,898,000 for the fiscal year[43] - In the fiscal year 2023, the company reported a loss of approximately RMB 53.8 million, a decrease from a loss of RMB 86.0 million in fiscal year 2022, primarily due to an increase in gross profit of about RMB 22.2 million and a reduction in research and development expenses of approximately RMB 11.6 million[117] - Revenue increased from approximately RMB 103.9 million in the fiscal year ending December 31, 2022, to approximately RMB 263.9 million in the fiscal year ending December 31, 2023, representing a growth of about 154.0%[125] - The company's revenue increased from approximately RMB 103.9 million in the fiscal year 2022 to approximately RMB 263.9 million in the fiscal year 2023, representing a growth of 154.0%[138] - The number of paying users reached 1,833.8 thousand, a significant increase of 546.6% compared to 283.6 thousand in the previous year[145] - Average monthly paying users rose to 152.8 thousand, up 547.5% from 23.6 thousand in the prior year[145] - Gross profit increased by 138.1% from approximately RMB 16.0 million in 2022 to approximately RMB 38.2 million in 2023[138] - The digital media segment's revenue grew by 230.9% from approximately RMB 20.0 million to approximately RMB 66.2 million[151] - The game product supply business revenue increased by 105.1% from approximately RMB 25.2 million to approximately RMB 51.7 million[151] - The cost of sales rose by 156.9% from approximately RMB 87.9 million to approximately RMB 225.7 million, with sales cost accounting for about 85.5% of total revenue[152] - Research and development expenses decreased by 31.0% from approximately RMB 37.5 million to approximately RMB 25.9 million[147] - Administrative expenses rose by RMB 13.9 million or 58.9% to approximately RMB 37.6 million, primarily due to increased employee costs, office rent, and professional fees[175] Assets and Liabilities - Total assets amounted to RMB 60,540,000 at the end of the fiscal year[43] - The company's cash and cash equivalents increased to approximately RMB 372 million from RMB 20.7 million, mainly due to funds raised from new share placements[182] - Trade receivables impairment decreased from RMB 20.4 million to RMB 6.3 million, reflecting improved recoverability of accounts receivable[176] - The company incurred income tax expenses of approximately RMB 701,000 for the year, up from RMB 321,000 in the previous year, attributed to increased taxable income from subsidiaries[162] Business Operations and Strategy - The company expanded its business structure in the first half of 2023 by developing and operating AIGC mobile applications to further scale its operations[116] - The company obtained exclusive operating rights for the NGA gaming community in the second half of 2023, ensuring a smooth transition for community operations and providing enhanced digital media distribution services[116] - The company plans to continue leveraging its strengths in mobile gaming, digital media, and game product supply, while actively exploring overseas market expansion to enhance revenue generation capabilities[120] - The company aims to increase investment in game engine development and innovative product combinations to strengthen its market competitiveness[120] - The company is expanding its game product supply business, facing challenges such as product quality from suppliers, reliance on a single customer, and fluctuations in overseas exchange rates[189] Risks and Compliance - The company may face significant risks related to contractual arrangements, including potential bankruptcy or dissolution of its consolidated affiliated entities, which could impact its ability to utilize important assets for business operations[45] - Changes in China's tax policies could lead to increased tax liabilities for the company, potentially reducing net profit margins[45] - The company faces risks in the mobile gaming sector, including new policy changes, reliance on distribution channel providers, and potential delays in payments from settlement agents, which could adversely affect cash flow and financial performance[188] - The company is committed to adhering to corporate governance codes and has complied with all applicable provisions throughout the fiscal year 2023[131] Corporate Governance - The company has received exemptions from strict compliance with certain listing rules regarding ongoing connected transactions under the contractual arrangements[53] - The board reviews the overall performance and compliance of contractual arrangements at least once a year, ensuring transparency for shareholders and potential investors[53] - No significant transactions or arrangements involving the company's business have been established by any directors or their related entities during the fiscal year 2023[56] - The company has not entered into any management or administrative contracts concerning the majority of its business during the fiscal year 2023[57] - The company has purchased appropriate liability insurance for directors and senior officers to mitigate risks associated with potential legal claims[60] - The company estimates a low risk of significant events requiring directors to assume major responsibilities in the foreseeable future[60] - The independent non-executive directors have confirmed their independence and commitment to notify the exchange of any changes affecting their independence[100] - The company has established formal and informal channels for independent non-executive directors to express their opinions openly[100] - The board of directors is required to meet at least four times a year, approximately once per quarter, with the majority of directors participating[91] - The company’s independent non-executive directors are provided with ongoing updates regarding legal and regulatory developments to assist them in fulfilling their roles[78] - The company’s independent non-executive directors are evaluated annually to ensure compliance with independence requirements[100] Stock Options - The stock option plan allows the company to grant options to eligible participants, with a maximum limit of 54,600,000 shares, representing 10% of the total issued shares as of the report date[89] - The stock options granted to any participant within any 12-month period cannot exceed 1% of the issued shares, requiring shareholder approval for any excess[105] - The stock option plan has been effective since February 21, 2020, and has approximately six years remaining[96] - The board has the authority to grant options exceeding the plan limit upon shareholder approval and compliance with listing rules[89]

二 零 二 四 年，本 公 司 將 延 續 拓 展 在 手 機 遊 戲、數 字 媒 體 及 遊 戲 產 品 供 應 業 務 上 積 累 的 優 勢，維 持 業 務 的 穩 定 發 展，進 一 步 加 強 與 行 業 頭 部 媒 體 平 台 展 開 廣 泛 合 作。同 時，本 公 司 將 持 續 深 入 挖 掘 市 場 需 求，發 掘NGA遊 戲 社 區 的 多 元 化 業 務 模 式，持 續 開 發 升 級AIGC移 動 應 用，並 加 快 推 進 遊 戲 產 品 供 應 市 場 拓 展，積 極 開 拓 海 外 市 場，進 一 步 提 高 創 收 能 力，儘 早 實 現 扭 虧 為 盈。 未 來，本 公 司 將 繼 續 通 過 靈 活、適 時 的 資 源 調 配，保 持 各 業 務 的 健 康 發 展， 積極推進各業務的多元化發展，並保持整體業務的穩定性和提升盈利能力， 為 公 司 的 持 續 發 展 奠 定 堅 實 的 基 礎。本 公 司 對 未 來 充 滿 信 心。 – 4 – 管 理 層 討 論 與 分 析 財 務 回 顧 手 機 遊 戲 手 機 遊 戲 包 括 手 機 遊 戲 開 發 及 運 營 及 ...

Financial Performance - Revenue for the first half of 2023 reached RMB 142.8 million, a significant increase of 230.5% compared to RMB 43.2 million in the same period of 2022[45]. - Gross profit surged to RMB 23.6 million, reflecting a remarkable growth of 2,611.8% from RMB 872,000 year-on-year[45]. - The company's loss narrowed to approximately RMB 10.5 million, down 70.0% from a loss of RMB 35.2 million in the first half of 2022[45]. - The company reported a pre-tax loss from operating activities of RMB (10,193) thousand for the six months ended June 30, 2023, an improvement from a loss of RMB (35,090) thousand for the same period in 2022[20]. - The group reported a loss of approximately RMB 10.5 million in the first half of 2023, compared to a loss of approximately RMB 35.2 million in the first half of 2022[94]. - The total comprehensive loss for the period was RMB 7,355 thousand, a substantial decrease from RMB 37,443 thousand in the previous year[197]. - The loss attributable to the parent company was RMB 7,227 thousand, down from RMB 35,920 thousand year-over-year[197]. Assets and Liabilities - As of June 30, 2023, the company's total assets amounted to RMB 228,366 thousand, compared to RMB 115,679 thousand as of December 31, 2022, reflecting an increase of 97.2%[19]. - The company's cash and cash equivalents increased to RMB 52,472 thousand as of June 30, 2023, up from RMB 20,715 thousand as of December 31, 2022, representing a growth of 153.5%[19]. - The company's asset-liability ratio decreased to 7.0% as of June 30, 2023, down from 14.3% as of December 31, 2022, indicating improved financial stability[10]. - Total assets grew by 97.4%, from RMB 115.7 million in 2022 to RMB 228.4 million in 2023[69]. - The company's total equity as of June 30, 2023, was RMB 135,171 thousand, reflecting an increase from RMB 101,070 thousand at the end of 2022[197]. - Non-current liabilities decreased to RMB 11,877 thousand from RMB 18,823 thousand, representing a reduction of approximately 37.5%[200]. - Total equity reached RMB 135,171 thousand, up from RMB 54,347 thousand, showing a growth of approximately 148.5%[200]. Revenue Streams - Revenue from digital media content distribution increased from approximately RMB 2.9 million in the first half of 2022 to approximately RMB 41.5 million in the first half of 2023, representing a growth of 1,312.4%[85]. - Revenue from game product supply was approximately RMB 39.6 million in the first half of 2023, a new business segment launched in the second half of 2022[110]. - Total revenue from customer contracts was approximately RMB 142.8 million in the first half of 2023, compared to approximately RMB 43.2 million in the first half of 2022[109]. User Metrics - The number of paying players increased to 680,000, representing an increase of 821.4% from 73,800 in the previous year[58]. - Average monthly paying users rose to 113,300, up 821.1% from 12,300 in the same period last year[58]. - The average revenue per paying user decreased to RMB 114.9, down 76.7% from RMB 493.0 year-on-year[58]. - The average revenue per paying user in the gaming business decreased from approximately RMB 493.0 in the first half of 2022 to approximately RMB 114.9 in the first half of 2023, primarily due to a larger base of paying users and lower average revenue from overseas paying users[59]. - The number of average monthly paying users in the gaming business increased from approximately 12.3 thousand in the first half of 2022 to approximately 113.3 thousand in the first half of 2023[81]. Research and Development - The company's R&D expenses increased by 121.8%, from approximately RMB 5.5 million in the first half of 2022 to approximately RMB 12.2 million in the first half of 2023, driven by increased investment in multiplayer mobile game projects and AIGC product development[66]. - Research and development expenses increased to RMB 12.19 million in the first half of 2023, compared to RMB 5.50 million in the same period of 2022, reflecting a growth of 121.5%[168]. - The company plans to utilize the remaining proceeds for research and development of gaming and AI products, with an expected timeline for utilization by June 30, 2024[161]. Corporate Governance and Compliance - The company has established corporate governance measures to avoid conflicts of interest among directors, ensuring operational independence from related entities[156]. - The company has maintained compliance with corporate governance codes and regulations throughout the reporting period[192]. - The company is currently not in compliance with the minimum number of independent non-executive directors required by listing rules[134]. Strategic Initiatives - The company entered into a cooperation agreement with Infinities Technology (Cayman) Holding Limited to establish a joint venture aimed at expanding advertising distribution services in the People's Republic of China[1]. - The company plans to further develop new products and technologies in collaboration with Infinities Cayman, focusing on advertising traffic supply agreements[1]. - The company plans to enhance its market competitiveness by increasing investment in game engine development and operations[39]. - The company aims to explore new business models and integrate AIGC technology into its operations for future growth[39]. - The company plans to continue expanding its mobile game development and operations, digital media content distribution, and game product supply businesses in the second half of 2023[75]. - The company aims to enhance its revenue-generating capabilities by further exploring market demands and accelerating the expansion of its game product supply market, particularly in overseas markets[75]. Risks and Challenges - The group faced major risks including external disruptions such as system interruptions on distribution platforms and potential cybersecurity threats[102]. - Key challenges include reliance on distribution channel providers and potential delays or defaults in payments from settlement agents, which could adversely affect cash flow and financial performance[123]. - The group is facing difficulties related to the quality of game products sourced from suppliers and potential losses during transportation[146]. - The group relies on a single customer, which poses a risk to its operations[146]. - The group is exposed to foreign exchange fluctuations that may negatively impact cash flow or financial performance[146]. Other Financial Information - The company does not plan to declare an interim dividend for the first half of 2023, consistent with the previous year[142]. - The company has not issued any share options since the adoption of the share option scheme on February 21, 2020, and there are no unexercised options as of June 30, 2023[163]. - The company issued 582 thousand shares during the reporting period, raising RMB 87,597 thousand[197]. - The company's accumulated losses as of June 30, 2023, stood at RMB 107,781 thousand, compared to RMB 48,567 thousand at the end of 2022[197].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公告全部或任何部份內容而產生或因依賴該等內容而引致之任何損 失承擔任何責任。 Infinities Technology International (Cayman) Holding Limited 多 牛 科 技 國 際（ 開 曼 ）集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1961） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 的 中 期 業 績 公 告 多 牛 科 技 國 際（開 曼）集 團 有 限 公 司（「本 公 司」）董 事（「董 事」）會（「董 事 會」） 宣佈本公司及其附屬公司（統稱「本集團」）截至二零二三年六月三十日止 六 個 月（「二 零 二 三 年 上 半 年」）的 未 經 審 核 中 期 簡 明 合 併 業 績，連 同 二 零 二二年同期的比較數字。 財務表現摘要 截至六月三十日止六個月 二零二三年 二零二二年 變動 （人民幣千元）（人民幣千元） (%) （未經審核） （未經審核） 收益 142,787 43 ...

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 103.91 million, a decrease of 9.3% compared to RMB 114.91 million in 2021[6]. - Gross profit for the same period was RMB 16.05 million, representing a gross margin of 15.4%[6]. - The net loss for the year was RMB 86 million, slightly improved from a loss of RMB 86.82 million in 2021[6]. - Adjusted net loss, excluding listing expenses and trade receivables impairment, was RMB 65.61 million, compared to RMB 71.87 million in 2021[6]. - Revenue for the fiscal year 2022 decreased by approximately RMB 11.0 million or 9.6% to about RMB 103.9 million from RMB 114.9 million in fiscal year 2021, primarily due to a decline in mobile game revenue by approximately RMB 44.3 million[12]. - The company's loss for fiscal year 2022 was approximately RMB 86.0 million, slightly narrowing from a loss of RMB 86.8 million in fiscal year 2021, attributed to increased gross profit and reduced selling and distribution expenses[13]. - Total revenue decreased by 9.6% from RMB 114.9 million in 2021 to RMB 103.9 million in 2022[150]. - Revenue from mobile games declined by 43.0% from RMB 103.0 million in 2021 to RMB 58.7 million in 2022[151]. - Revenue from digital media content distribution increased by 68.0% from RMB 11.9 million in 2021 to RMB 20.0 million in 2022[151]. - The newly developed game product supply business generated revenue of approximately RMB 25.2 million in 2022[152]. Assets and Liabilities - Total assets decreased to RMB 115.68 million in 2022 from RMB 173.92 million in 2021, a decline of 33.4%[8]. - Total equity fell to RMB 54.35 million in 2022, down 60.8% from RMB 138.51 million in 2021[8]. - Non-current assets decreased significantly to RMB 28.81 million from RMB 57.11 million in 2021, a drop of 49.5%[8]. - Current liabilities increased to RMB 42.51 million in 2022, up from RMB 32.57 million in 2021, an increase of 30.0%[8]. Strategic Plans and Market Development - The company plans to focus on new product development and market expansion strategies in the upcoming year[10]. - The company plans to enhance its mobile game development and operations, and expand its digital media content distribution business in collaboration with leading media platforms[17]. - The company aims to accelerate the market expansion of its new game product supply business and actively explore overseas markets to improve revenue generation capabilities[17]. - The company will focus on integrating artificial intelligence technology into its operations, enhancing game engine development, and exploring new business models[16]. - The company is committed to maintaining the stability of its overall business while actively pursuing diversification strategies to enhance profitability[19]. - The company expresses confidence in overcoming challenges and achieving better results in the future[20]. - The company plans to increase investment in game engine development and game publishing operations, aiming to enhance competitiveness and explore new business models[141]. - The company is closely monitoring overseas market opportunities and has accelerated strategic cooperation to promote overseas business development[137]. Corporate Governance - The board of directors has undergone significant changes, with multiple appointments and resignations effective May 23, 2022[2][3]. - The board consists of seven directors, including two executive directors, two non-executive directors, and three independent non-executive directors[183]. - The company has maintained compliance with all applicable corporate governance codes during the fiscal year 2022[176]. - The board is responsible for key decisions including overall strategy, budget approval, and risk management systems[179]. - All directors have access to relevant information and independent professional advice when necessary[178]. - The company has established formal and informal channels for independent non-executive directors to express their opinions openly[187]. - Each director received training to ensure understanding of the company's operations and regulatory responsibilities[190]. - The company has purchased appropriate liability insurance for directors and senior officers against legal claims[194]. - The nomination committee oversees the appointment and succession planning of directors[188]. - The company has a balanced board composition to ensure effective independent judgment[181]. Shareholder Information - The company did not recommend any final dividend for the fiscal year 2022, consistent with the previous fiscal year[28]. - As of December 31, 2022, the company's distributable reserves amounted to approximately RMB 23.0 million[33]. - Major shareholders include Ms. An Fenghua and Infinities Cayman, each holding 280,498,495 shares, representing 51.37% of total shares[49]. - Mr. Tan Bing holds 48,592,274 shares, accounting for 8.9% of total shares[49]. - The company has not purchased, sold, or redeemed any of its listed securities during the fiscal year 2022[37]. - There were no known tax benefits for shareholders due to shareholding[32]. Risks and Compliance - The company may face significant consequences if the Chinese government deems its contractual arrangements for mobile gaming operations non-compliant with applicable laws[96]. - There is a risk of losing access to important assets if any of the consolidated entities declare bankruptcy or face liquidation[100]. - The company anticipates higher tax rates and potential additional tax liabilities due to its contractual arrangements, which could reduce net profit margins[101]. - Changes in China's preferential tax policies may lead to increased tax liabilities for the company[103]. - The company is committed to maintaining its subsidiaries' qualifications for preferential tax rates to continue enjoying tax benefits[103]. - The board closely monitors developments in applicable Chinese laws and regulations to ensure compliance and control by Chinese investors[97]. - Potential conflicts of interest may arise between the shareholders and the company, which could lead to unfavorable modifications to agreements[105]. Related Party Transactions - The company has ongoing related party transactions with Chengdu Electric Bus Trading Co., Ltd. for the supply of gaming products from August 1, 2022, to December 31, 2024[59]. - The independent non-executive directors confirmed that the related party transactions are conducted in the ordinary course of business and on fair commercial terms[65]. - The independent auditor has not identified any issues that would lead them to believe the disclosed related party transactions were not approved by the board[66]. - The transactions under the game product supply agreement are subject to the disclosure and independent shareholder approval requirements due to applicable percentage ratios exceeding 25%[63]. - The company has complied with the applicable disclosure requirements under the listing rules regarding the related party transactions[66]. Operational Efficiency - The company has implemented various business processes, approval systems, and risk control management systems to enhance operational efficiency[73]. - The integrated affiliate's administrative management system has been established to select experienced personnel for key management positions[73]. - The company is committed to protecting the integrity of the integrated affiliate's assets and ensuring compliance with operational guidelines[79]. Employee and Compensation - The company has a defined contribution retirement plan for all employees, with no forfeited contributions used to offset current contribution levels[52]. - The company has not entered into any management and administrative contracts concerning the majority of its business during the fiscal year 2022[116].

Financial Performance - The company reported a basic loss attributable to ordinary equity holders of RMB 84,445,000 for the year ended December 31, 2022, compared to RMB 85,056,000 for the previous year[7]. - The group reported a pre-tax loss of RMB 86,000,000 for 2022, slightly improved from a loss of RMB 86,822,000 in 2021[27]. - The company reported a net loss of approximately RMB 86.0 million for the fiscal year 2022, a slight improvement from a net loss of RMB 86.8 million in fiscal year 2021[61]. - The basic and diluted loss per share attributable to ordinary shareholders for the year ended December 31, 2022, was RMB (15.5) cents, compared to RMB (15.6) cents in 2021, showing a slight improvement[110]. - Total equity as of December 31, 2022, was RMB 54,347,000, down from RMB 138,513,000 in 2021, reflecting a significant decrease of approximately 60.8%[116]. Revenue and Sales - The group's revenue for the year 2022 was RMB 103,910,000, a decrease of 9.3% compared to RMB 114,914,000 in 2021[27]. - Revenue for the fiscal year 2022 decreased to approximately RMB 103.9 million, a decline of RMB 11.0 million or 9.6% from RMB 114.9 million in fiscal year 2021[35]. - Revenue from mobile gaming dropped by approximately RMB 44.3 million or 43.0% to about RMB 58.7 million in fiscal year 2022[47]. - Revenue from digital media content increased by approximately RMB 8.1 million or 68.0% to about RMB 20.0 million in fiscal year 2022[48]. - Total revenue from customer contracts was RMB 103,910,000, representing a decrease from RMB 114,914,000 in the previous fiscal year[71]. Expenses and Costs - The group's cost of sales for 2022 was RMB 87,865,000, down from RMB 100,523,000 in 2021, reflecting a reduction of 12.6%[18]. - Selling and distribution expenses decreased by approximately RMB 13.9 million or 68.2% to about RMB 6.5 million for the fiscal year ending December 31, 2022[75]. - Administrative expenses increased by approximately RMB 1.4 million or 6.5% to about RMB 23.6 million for the fiscal year ending December 31, 2022[76]. - Research and development expenses increased by approximately RMB 0.1 million or 0.4% to approximately RMB 37.5 million for the year ended December 31, 2022, primarily due to continued investment in mobile game development[97]. Trade Receivables - Trade receivables as of December 31, 2022, amounted to RMB 65,651,000, an increase from RMB 60,351,000 as of December 31, 2021[9]. - The net impairment of trade receivables increased to RMB 20,388,000 in 2022 from RMB 14,948,000 in 2021, representing a rise of 36.5%[18]. - Trade receivables aged over 365 days amounted to RMB 15,422,000 in 2022, a decrease of 48.9% from RMB 30,301,000 in 2021[24]. - The company aims to strictly control outstanding receivables to minimize credit risk, with overdue balances reviewed regularly by senior management[9]. Government Support and Subsidies - The company received government subsidies totaling RMB 2.4 million for the year ended December 31, 2021, related to COVID-19 support measures[16]. - Interest income for the year was RMB 373,000, while government subsidies amounted to RMB 304,000, a decrease from RMB 2,444,000 in the previous year[134]. Business Strategy and Development - The group has expanded its business segments to include game product supply for partners, aiming to enhance business scale[29]. - The group is focusing on deepening mobile game development and stable expansion of digital media marketing[29]. - The company plans to accelerate the launch of multiple co-developed mobile games and actively expand into overseas advertising markets in 2023[40]. - The company aims to establish a more comprehensive supply system for game products and enhance profitability by expanding partnerships with suppliers[41]. - The company plans to accelerate the development of overseas markets and strengthen strategic partnerships to enhance business growth[60]. Compliance and Governance - The company has maintained compliance with all applicable corporate governance codes during the fiscal year 2022[13]. - The group has consolidated financial statements prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[142]. Employee and Operational Metrics - The total number of employees as of December 31, 2022, was 89, with total employee costs approximately RMB 14.9 million for the year ended December 31, 2022[106]. - The company's management team and board expressed gratitude for the continuous support from shareholders, employees, and business partners[3]. Market Conditions and Challenges - The company faces challenges in the mobile gaming market, including reliance on distribution channels and potential delays in payments from settlement agents[88]. - The average monthly paying users decreased from approximately 29,300 in fiscal year 2021 to about 23,600 in fiscal year 2022, primarily due to the economic downturn caused by the pandemic[44]. - The group anticipates significant economic recovery in China, driven by the development of the digital economy over the next decade[31].

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 43,197,000, representing a 38.4% increase compared to RMB 31,201,000 in the same period of 2021[9]. - The company reported a net loss of RMB 35,187,000, which is a 105.4% increase in losses compared to RMB 17,132,000 in the previous year[9]. - Gross profit decreased significantly to RMB 872,000, down 89.5% from RMB 8,339,000 year-on-year[9]. - The group recorded a loss of approximately RMB 35.2 million in the first half of 2022, compared to a loss of approximately RMB 17.1 million in the first half of 2021, an increase of approximately RMB 18.1 million[24]. - The company incurred a loss before tax of RMB 35,090,000, compared to a loss of RMB 17,026,000 in the previous year, reflecting an increase in losses of approximately 106.5%[98]. - The net loss for the period was RMB 35,187,000, which is more than double the loss of RMB 17,132,000 reported in the same period last year, marking an increase of approximately 105.9%[101]. - The group reported a basic loss attributable to equity holders of the parent of RMB 33,664,000 for the six months ended June 30, 2022, compared to RMB 17,398,000 for the same period in 2021[155]. Assets and Liabilities - Total assets as of June 30, 2022, were RMB 132,111,000, a decrease of 24.0% from RMB 173,922,000 as of December 31, 2021[10]. - Current assets fell by 28.2% to RMB 83,923,000 from RMB 116,809,000 year-on-year[10]. - Total equity decreased by 27.0% to RMB 101,070,000 from RMB 138,513,000 as of December 31, 2021[10]. - Non-current liabilities were RMB 2,558,000, down 10.0% from RMB 2,841,000 year-on-year[10]. - Trade receivables as of June 30, 2022, amounted to RMB 57,668,000, a decrease from RMB 60,351,000 as of December 31, 2021[160]. - Total liabilities decreased from RMB 32,568,000 to RMB 28,483,000, a decline of around 12.5%[104]. - The total equity attributable to owners of the parent decreased from RMB 129,212,000 to RMB 93,292,000, a decline of approximately 27.8%[107]. Revenue Sources - The majority of revenue is derived from the sale of virtual items in multiplayer mobile games, consistent with the business strategy disclosed in the 2021 annual report[14]. - Mobile game revenue rose from approximately RMB 24.9 million in the first half of 2021 to approximately RMB 40.3 million in the first half of 2022, an increase of 61.8%[35]. - Revenue from mobile game development and operation reached RMB 40,017 thousand, up from RMB 24,875 thousand, representing a growth of 60.7% year-over-year[140]. User Metrics - The number of paying users increased by 78.3% from 41.4 thousand in the first half of 2021 to 73.8 thousand in the first half of 2022[28]. - Average monthly paying users rose from approximately 6.9 thousand in the first half of 2021 to approximately 12.3 thousand in the first half of 2022, also an increase of 78.3%[28]. - Average revenue per paying user (ARPPU) decreased by 9.1% from RMB 542.3 in the first half of 2021 to RMB 493.0 in the first half of 2022[29]. Expenses and Costs - Sales cost increased to approximately 98.0% of total revenue in the first half of 2022, up from 73.3% in the first half of 2021, due to intensified competition in the gaming industry[37]. - Research and development expenses decreased from approximately RMB 13.0 million in the first half of 2021 to approximately RMB 5.5 million in the first half of 2022, a reduction of 57.7%[42]. - The cost of sales for the six months ended June 30, 2022, was RMB 42,325 thousand, which is an increase of 85.0% compared to RMB 22,862 thousand in 2021[149]. Cash Flow and Financial Position - Cash and cash equivalents were approximately RMB 11.5 million as of June 30, 2022, compared to RMB 12.1 million as of December 31, 2021, remaining relatively stable[51]. - Cash used in operating activities amounted to RMB 6,877,000, a significant improvement from RMB 32,219,000 in the previous year, reflecting a reduction in cash outflow of approximately 78.7%[116]. - The net cash flow from financing activities was RMB 4,718,000, up from RMB 3,209,000 in the prior year, representing an increase of about 46.9%[116]. - The company recorded a decrease in cash and cash equivalents of RMB 1,808,000, a notable improvement compared to a decrease of RMB 30,908,000 in the same period last year[116]. Corporate Governance and Compliance - The company maintained compliance with corporate governance codes throughout the reporting period[92]. - The company has not engaged in any share buybacks or repurchases during the first half of 2022[85]. - The company did not recommend any interim dividend for the first half of 2022, consistent with the previous year[93]. Market and Strategic Focus - The company continues to focus on providing a diverse content portfolio, primarily through mobile games and electronic magazines[14]. - The company plans to expand its multiplayer mobile game development and operations while also entering overseas markets, focusing on casual games and social software[19]. - The domestic mobile game market is expected to gradually return to a growth phase following the normalization of regulations and issuance of game licenses[19]. - The group anticipates significant development opportunities in the overseas market, with potential for increased revenue from self-developed games[19]. Related Party Transactions - The company is subject to ongoing related party transactions due to its agreement with Chengdu Bus, which exceeds 25% in applicable percentage ratios[64]. - The group recognized a deferred tax asset related to tax losses carried forward, amounting to RMB 16,853,000 as of June 30, 2022[165].

Financial Performance - The company reported revenue of RMB 114.914 million for the year ended December 31, 2021, a decrease of 32.5% from RMB 170.179 million in 2020[9]. - Gross profit for the same period was RMB 14.391 million, down 74.1% from RMB 55.638 million in 2020[9]. - The company recorded a net loss of RMB 86.822 million for 2021, compared to a profit of RMB 1.023 million in 2020[9]. - The group's revenue decreased by approximately RMB 55.3 million or 32.5% from about RMB 170.2 million in the fiscal year ending December 31, 2020, to about RMB 114.9 million in the fiscal year ending December 31, 2021[19]. - Gross profit fell by approximately RMB 41.2 million or 74.1%, from about RMB 55.6 million in the fiscal year ending December 31, 2020, to about RMB 14.4 million in the fiscal year ending December 31, 2021[19]. - Revenue from mobile game development and operation decreased by approximately RMB 51.2 million, while revenue from digital media content distribution decreased by approximately RMB 5.4 million[19]. - The company incurred a net loss of RMB 30.902 million during the same period[124]. - The company reported a net loss of approximately RMB 86.8 million for the fiscal year 2021, compared to a profit of RMB 1.0 million in fiscal year 2020[178]. Assets and Equity - Total assets decreased to RMB 173.922 million in 2021 from RMB 255.169 million in 2020, representing a decline of 31.8%[13]. - The company's total equity also fell to RMB 138.513 million in 2021, down 38.8% from RMB 226.262 million in 2020[13]. - Non-current assets decreased to RMB 57.113 million in 2021 from RMB 74.162 million in 2020, a drop of 22.9%[13]. - As of December 31, 2021, the company had distributable reserves of approximately RMB 762 million[40]. Market and Regulatory Environment - The ongoing impact of the COVID-19 pandemic has significantly affected the company's profitability and customer preferences[18]. - In 2021, only 755 game licenses were issued by the National Press and Publication Administration, a significant drop from 1,405 in 2020, indicating a tightening regulatory environment[22]. - The company plans to shift focus from single-player mobile game development to multiplayer mobile game development due to changing player preferences since the second quarter of 2020[23]. - The company faces risks related to foreign ownership restrictions in the mobile gaming sector under current Chinese laws[127]. - The board closely monitors developments in applicable Chinese laws and regulations to ensure compliance and control by Chinese investors[129]. - The company may face significant consequences if the contractual arrangements are deemed invalid under Chinese law[127]. Research and Development - The company invested in research and development to launch various new games, particularly focusing on multiplayer mobile games[18]. - Research and development expenses increased by approximately RMB 23.3 million, while sales and distribution expenses rose by RMB 19.1 million[178]. Shareholder Structure and Governance - The total number of shares issued by the company is at least 25% held by the public as of the report date[46]. - The company confirmed that all independent non-executive directors have maintained their independence as per the listing rules[52]. - The company’s board of directors includes a mix of executive and non-executive members, ensuring diverse governance[49]. - The ownership structure indicates significant control by a few key individuals, with Mr. Liang, Mr. Lu, and Ms. Su being recognized as acting in concert[64]. - The equity stakes of the major shareholders reflect a concentrated ownership structure, which may impact corporate governance and strategic decisions[68]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange and complied with all applicable provisions during the fiscal year 2021[168]. Business Strategy - The company aims to diversify its product offerings, especially in the multiplayer mobile gaming sector[18]. - The company completed the acquisition of 392,560,053 shares, representing approximately 71.90% of the total issued share capital, with no intention to expand or divest existing operations[23]. - The company remains optimistic about future growth opportunities, anticipating a rapid recovery once game licenses are resumed[23]. Revenue Sources and Customer Base - The company generated most of its revenue from the sale of virtual items in multiplayer mobile games during the fiscal year 2021[176]. - The company has not relied on any single customer, with transactions from any single customer not exceeding 10% of total revenue in fiscal year 2021[162]. - The largest supplier accounted for approximately 20.2% of the company's cost of revenue, while the top five suppliers accounted for 67.8%[164]. Compliance and Legal Matters - The company has complied with all disclosure requirements under the Listing Rules regarding connected transactions[84]. - The company has not entered into any management or administrative contracts concerning the majority of its business during the fiscal year 2021[151]. - The company has not established any equity-related agreements during the fiscal year 2021[171]. - The group has received exemptions from the Stock Exchange regarding strict compliance with announcement and independent shareholder approval requirements for transactions under the contractual arrangements[142].

Financial Performance - The company's revenue for the first half of 2021 was approximately RMB 31.2 million, a decrease of RMB 68.6 million or 68.7% compared to RMB 99.8 million in the first half of 2020[9]. - Gross profit for the first half of 2021 was RMB 8.3 million, down 73.0% from RMB 30.9 million in the same period last year[9]. - The company recorded a loss of approximately RMB 17.1 million in the first half of 2021, a decline of RMB 24.3 million or 337.5% compared to a profit of RMB 7.2 million in the first half of 2020[15]. - The company's revenue decreased from approximately RMB 998 million in the first half of 2020 to approximately RMB 312 million in the first half of 2021, a decline of about 68.7%[23]. - Gross profit fell from approximately RMB 309 million in the first half of 2020 to approximately RMB 83 million in the first half of 2021, a decrease of about 73.0%[23]. - The company recorded a loss of approximately RMB 171 million in the first half of 2021, compared to a profit of approximately RMB 72 million in the first half of 2020, a decline of about 337.5%[24]. - The net loss for the first half of 2021 was approximately RMB 17.1 million, compared to a profit of approximately RMB 7.2 million in the first half of 2020[50]. - The total comprehensive loss for the period amounted to RMB (18,183) thousand, compared to a gain of RMB 8,459 thousand in the same period of 2020[124]. Assets and Liabilities - Non-current assets as of June 30, 2021, were RMB 70.3 million, a decrease of 5.2% from RMB 74.2 million as of December 31, 2020[10]. - Total assets decreased by 7.7% to RMB 235.5 million as of June 30, 2021, compared to RMB 255.2 million at the end of 2020[10]. - Cash and cash equivalents decreased from approximately RMB 47.2 million as of December 31, 2020, to approximately RMB 15.5 million as of June 30, 2021[52]. - Total liabilities decreased to RMB 20,995,000 from RMB 26,743,000, a reduction of 21.6%[127]. - Net assets decreased to RMB 211,379,000 from RMB 226,262,000, a decrease of 6.6%[130]. - The company’s equity attributable to owners decreased to RMB 196,746,000 from RMB 215,195,000, a decline of 8.5%[130]. Revenue Sources - Revenue from mobile games dropped from approximately RMB 90.5 million in the first half of 2020 to approximately RMB 24.9 million in the first half of 2021, a decrease of about RMB 65.6 million or 72.5%[35]. - Digital media content distribution revenue fell from approximately RMB 9.3 million in the first half of 2020 to approximately RMB 6.3 million in the first half of 2021, a decline of about RMB 3.0 million or 32.2%[36]. - Revenue from mobile game development and operation was RMB 24,875,000, down 72.5% from RMB 90,329,000 in the previous year[158]. User Engagement - The number of paying players dropped significantly from 1,681,000 in the first half of 2020 to 41,400 in the first half of 2021, a decrease of 97.5%[28]. - Average monthly paying users decreased from approximately 280,200 in the first half of 2020 to 6,900 in the first half of 2021, also a decline of 97.5%[28]. - Average revenue per paying user (ARPPU) increased from approximately RMB 60.07 in the first half of 2020 to RMB 542.29 in the first half of 2021, an increase of 802.8%[29]. Operational Challenges - The company faced operational disruptions due to the COVID-19 pandemic, delaying the launch of a new multiplayer mobile game until June 2021[16]. - The decline in revenue was primarily due to a significant drop in earnings from mobile game development and operations, which decreased by approximately RMB 655 million[23]. - The company faced risks including new policies affecting the mobile gaming industry and reliance on distribution channels, which could adversely impact operations and financial performance[68]. Strategic Initiatives - The company aims to become a leading digital entertainment content provider, with the mobile gaming market in China projected to grow from RMB 239.6 billion in 2020 to RMB 432.1 billion by 2025, representing a CAGR of 12.5%[16]. - The company plans to actively seek collaborative opportunities to stabilize and diversify revenue streams in response to increasing industry competition and regulatory changes[16]. - The company plans to accelerate the development and launch of new multiplayer mobile games, with three additional titles expected to be released in 2021[23]. - The company aims to enhance its competitiveness in the multiplayer mobile gaming sector by launching new titles and adapting to changing player preferences[23]. Research and Development - Research and development expenses increased by approximately RMB 102 million in the first half of 2021 compared to the same period in 2020, reflecting a rise of 369.9%[32]. - Research and development expenses increased significantly to RMB 12,980 thousand, compared to RMB 2,762 thousand in the same period last year, reflecting a focus on new product development[110]. Shareholder Information - As of June 30, 2021, major shareholders held 61.85% of the company's shares, indicating significant insider ownership[71]. - The major shareholders collectively own 86.02% of the capital contribution in Guangzhou Jiuzun, as per the second confirmation letter of concerted action[78]. - The board is unaware of any arrangements that may lead to a change in control of the company in the future[87].